Malcolm Turnbull to include Labor critic on NBN panel

Communications Minister Malcolm Turnbull will appoint one of the fiercest critics of Labor's national broadband network to his expert panel overseeing a cost-benefit analysis of the NBN, a leaked press release reveals.

Economist Henry Ergas, one of the fiercest critics of the previous Labor government's policy on the national broadband network, will on Malcolm Turnbull's NBN analysis panel. Photo: Nic Walker

The draft document, dated “xx November 2013”, states that Mr Turnbull will announce a three-person panel to “analyse the economic and social costs and benefits arising from the availability of broadband of differing properties via various technologies”.

Mr Turnbull plans to appoint economist and columnist for The Australian Henry Ergas as a panel member.

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Professor Ergas has been one of the fiercest critics of the previous Labor government's plans to spend $37.4 billion running fibre to the front doors of homes and businesses across Australia.

Mr Ergas said he had handed out Liberal how-to-vote cards at the recent election, but said his Coalition connections would have no bearing on his ability to give independent advice if he were appointed to the NBN panel.

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Professor Ergas said it was a good thing that he participated in ‘‘community life’’ by supporting successful Liberal Senate candidate for the ACT Zed Seselja.

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He said he was not a member of the Liberal Party but ‘‘thought it would be a good thing for the country’’ if Mr Seselja was elected.

Professor Ergas said he had not been formally asked to join Mr Turnbull’s panel, and understood the selection process was still at draftstage.

Joining Professor Ergas on the panel will be former chair of the Australian Competition and Consumer Commission Allan Fels and former eBay Australia chief Alison Deans.

This supports a report in Wednesday's Australian Financial Review, which named the three as likely to be appointed to the panel.

Former communications minister Stephen Conroy described Professor Ergas as a ‘‘stooge of the Liberal Party’’.

Senator Conroy said Professor Ergas had made ‘‘false claims’’ about the NBN, including his belief that it would cost Australians $215 a month in retail fees.

According to the press release, which also includes the terms of reference of the cost-benefit analysis, Mr Turnbull wants the panel to provide a report to government within six months.

Mr Turnbull and the Coalition argued that Labor's “Rolls Royce” NBN – which would run fibre to 93 per cent of households and businesses across Australia – was too expensive. He has advocated a cheaper, slower version of the network which relies more heavily on Telstra's copper telephone lines.

According to the draft documents, Mr Turnbull will ask the three experts to answer four main questions:

What is the direct and indirect value, in economic and social terms, of increased broadband speeds, and to what extent should broadband be supported by government?

What are the optimal long-term ownership and regulatory arrangements for NBN Co?

How should the activities of NBN Co be “constrained” given its mandate to efficiently build, operate and maintain a wholesale-only access network?

How should NBN Co's capital investment, products and pricing be reviewed and regulated?